The recent rise in mortgage rates has negatively impacted builder confidence, resulting in disappointing housing start numbers as the market braces for further challenges.
With building permits for 5-unit housing at recessionary levels, the current Fed policy is critically restrictive for housing growth, stalling any potential construction boom.
Despite a slight increase in single-family home authorizations, the overall construction outlook remains bleak with rising mortgage rates overshadowing any recent positive trends.
The fall of the Fed funds rate may eventually stimulate apartment construction demand, but as of now, the market continues to grapple with restrictive policies.
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